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Lipper: Investors' Risk Appetite Grows for Stock, Junk Funds

Image: Lipper: Investors' Risk Appetite Grows for Stock, Junk Funds

Friday, 11 Mar 2016 09:28 AM

Investors showed renewed appetite for risk in the past week, with U.S.-based taxable debt funds taking in the most cash in a year and stock funds posting net inflows for the first time in 2016,

Lipper data released on Thursday showed. U.S.-based stock funds attracted $4.6 billion in net new cash during the week ended March 9, the data showed, breaking a nine-week streak of outflows.

Taxable bond mutual funds and exchange-traded funds in the United States attracted $5.8 billion in net new cash, their seventh straight week of inflows, Lipper said.

Investment-grade corporate debt funds took in $2.1 billion, while high-yield junk bond funds took in $1.8 billion, their fourth straight week of inflows.

"The investor's willing to take on a little bit more risk," Lipper research analyst Pat Keon said. "There are signs that the economy is continuing to grow strongly."

A U.S. government report released in the week surveyed showed jobs grew faster than expected. The inflows were spread throughout most asset classes. U.S.-focused stock funds took in $3.4 billion in net new money, while funds focused on international shares took in $1.1 billion, according to Lipper.

Emerging markets stock funds took in $1.6 billion, the most since April 2015, while the $5 million that moved into China-focused stock funds ended a nine-week streak of net outflows, the data showed. Funds focused on energy, financial, real estate and technology also took in net new money during the week. The $208 million net inflow into tech funds was the first in 2016, Lipper records show.

International and global debt funds took in $81 million during the week, their first net inflow since November. Treasury funds, which have mostly had inflows this year, posted $326 million in net outflows, their second straight week of withdrawals. But inflation-protected bond funds took in $541 million during the week.

Precious-metals commodities funds, which like Treasury securities are regarded as safe havens, attracted $423 million in the week, their ninth straight week of net inflows.

Investors bypassed stocks in Japan and Europe, delivering funds invested in both regions their sixth straight week of net outflows. Japanese stock funds posted $645 million in net withdrawals, while European stock funds bled $553 million, Lipper said.

Investors also added $2.4 billion in new cash to relatively low risk money-market funds during the week, the fund research service said.

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Investors showed renewed appetite for risk in the past week, with U.S.-based taxable debt funds taking in the most cash in a year and stock funds posting net inflows for the first time in 2016, Lipper data released on Thursday showed.
investors, risk, junk, stocks
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2016-28-11
Friday, 11 Mar 2016 09:28 AM
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